7 U.S. Code § 1723 - Generation and use of currencies by private voluntary organizations and cooperatives

An agreement entered into between the Administrator and a private voluntary organization or cooperative to provide food assistance through such organization or cooperative under this subchapter may provide for the sale or barter in 1 or more recipient countries, or 1 or more countries in the same region, of the commodities to be provided under such agreement.

(b) Minimum level of local sales

In carrying out agreements of the type referred to in subsection (a) of this section, the Administrator shall permit private voluntary organizations and cooperatives to sell, in 1 or more recipient countries, or in 1 or more countries in the same region, an amount of commodities equal to not less than 15 percent of the aggregate amounts of all commodities distributed under non-emergency programs under this subchapter for each fiscal year, to generate proceeds to be used as provided in this section.

(c) Description of intended uses

A private voluntary organization or cooperative submitting a proposal to enter into a non-emergency food assistance agreement under this subchapter shall include in such proposal a description of the intended uses of any proceeds that may be generated through the sale, in 1 or more recipient countries, or in 1 or more countries in the same region, of any commodities provided under an agreement entered into between the Administrator and the organization or cooperative.

(d) Use

Proceeds generated from any partial or full sale or barter of commodities by a private voluntary organization or cooperative under a non-emergency food assistance agreement under this subchapter may—

(1)be used to transport, store, distribute, and otherwise enhance the effectiveness of the use of agricultural commodities provided under this subchapter;

(2)be used to implement income-generating, community development, health, nutrition, cooperative development, agricultural, and other developmental activities within 1 or more recipient countries or within 1 or more countries in the same region; or

(3)be invested, and any interest earned on such investment may be used, for the purposes for which the assistance was provided to that organization, without further appropriation by Congress.

Subsec. (a). Pub. L. 107–171, § 3003(2), substituted “1 or more recipient countries, or 1 or more countries” for “the recipient country, or in a country”.

Subsec. (b). Pub. L. 107–171, § 3003(3), substituted “1 or more recipient countries, or in 1 or more countries” for “in recipient countries, or in countries” and struck out “foreign currency” before “proceeds”.

Subsec. (c). Pub. L. 107–171, § 3003(4), struck out “foreign currency” before “proceeds” and substituted “1 or more recipient countries, or in 1 or more countries” for “the recipient country, or in a country”.

Subsec. (d)(2). Pub. L. 107–171, § 3003(5)(B), substituted “income-generating” for “income generating” and “1 or more recipient countries or within 1 or more countries” for “the recipient country or within a country”.

1984—Pub. L. 98–473inserted following cl. (4): “in the case of commodities for urgent and extraordinary relief requirements, including pre-positioned commodities, transportation costs from designated points of entry or ports of entry abroad to storage and distribution sites and associated storage and distribution costs;”.

1977—Pub. L. 95–88substituted “transportation from United States ports to designated points of entry abroad in the case (1) of landlocked countries, (2) where ports cannot be used effectively because of natural or other disturbances, (3) where carriers to a specific country are unavailable, or (4) where a substantial savings in costs or time can be effected by the utilization of points of entry other than ports” for “, or, in the case of landlocked countries, transportation from United States ports to designated points of entry abroad”.

1966—Pub. L. 89–808reenacted, with linguistic changes, existing provisions for payment of costs and charges, included costs of acquisition, packaging, enrichment, preservation, fortification, processing, handling, other incidents, struck out provisions for authorization of appropriations for reimbursement of CCC, limitation on amount, and use of funds for purchase of foreign currencies, now covered by section
1724 of this title, and deleted other provisions for use of agencies, organizations, and facilities in making transfers, now covered by section
1722 of this title, and provision for transfer of funds from the CCC to such other Federal agency designated by the President for payment of ocean freight costs or for purchase of foreign currencies under this subchapter.

1964—Pub. L. 88–638substituted “1965”; for “1961”, “1966” for “1964”, and “$400,000,000” for “$300,000,000”, inserted “or donated under said section
1431, orsection
1431b or
1697 of this title”, provisions authorizing use of funds available under subchapter III, not exceeding $7,500,000 annually, to purchase foreign currencies accruing under subchapter II in order to meet costs designed to assure that commodities available under subchapters I or III are used to carry out more effectively the purposes for which such commodities are made available or to promote activities to alleviate the causes of the need for such assistance, provided that such funds are used to supplement, not substitute for, funds normally available for such purposes from other non-United States Government sources, and “or for the purchase of foreign currencies” after “ocean freight costs”.

1961—Pub. L. 87–128substituted authorization provision for period beginning January 1, 1961, and ending December 31, 1964, for authorization provision beginning January 1, 1960, and ending December 31, 1961, and made the annual limitation applicable to the amount programed rather than to the amount spent.

1960—Pub. L. 86–472authorized payment for transportation from United States ports to designated points of entry abroad in the case of landlocked countries, and permitted the payment of charges for general average contributions arising out of the ocean transport of transferred commodities.

1959—Pub. L. 86–341amended first sentence generally. Prior to amendment, first sentence read as follows: “Not more than $800,000,000 (including the Corporation’s investment in such commodities) shall be expended for all such transfers and for other costs authorized by this subchapter.”

1957—Pub. L. 85–128increased limitation on expenditures from $500,000,000 to $800,000,000.

1956—Act May 28, 1956, increased limitation on expenditures from $300,000,000 to $500,000,000, and authorized payment of ocean freight charges.